We feel now is a pretty good time to analyse Imricor Medical Systems, Inc.'s (ASX:IMR) business as it appears the company may be on the cusp of a considerable accomplishment. Imricor Medical Systems, Inc., a medical device company, designs, manufactures, sells, and distributes magnetic resonance imaging (MRI) compatible products for cardiac catheter ablation procedures in the United States. The AU$427m market-cap company posted a loss in its most recent financial year of US$23m and a latest trailing-twelve-month loss of US$20m shrinking the gap between loss and breakeven. The most pressing concern for investors is Imricor Medical Systems' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Imricor Medical Systems

According to some industry analysts covering Imricor Medical Systems, breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$14m in 2027. Therefore, the company is expected to breakeven roughly 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 69%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Imricor Medical Systems' growth isn’t the focus of this broad overview, however, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Imricor Medical Systems is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are key fundamentals of Imricor Medical Systems which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Imricor Medical Systems, take a look at Imricor Medical Systems' company page on Simply Wall St. We've also compiled a list of important aspects you should further research:

1. Historical Track Record: What has Imricor Medical Systems' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Imricor Medical Systems' board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.